Despite a weak local economy and a sluggish outlook for the nation's banking industry, Territorial Savings Bank said its stock offering was more than two times oversubscribed.

The company's newly formed parent, Territorial Bancorp Inc., is planning to raise more than $120 million by issuing more than 12.2 million shares at $10 a share. However, the company received offers for more than $284 million worth of shares from its depositors and borrowers.

"The board of directors, officers and employees of Territorial Savings Bank express their gratitude for the overwhelming support for the offering by their customers," the company said in a news release.

Territorial's IPO is a subscription offering, which gives longstanding depositors and borrowers the first opportunity to buy the stock.

The general public will be able to acquire stock on Monday when it begins trading on the NASDAQ Global Select Market under the symbol "TBNK."

Because the offering was oversubscribed, shares will be allocated relative to size of customers' deposits and the number of shares that they ordered.

Territorial, which was founded in 1921, said it plans to use the proceeds to expand its branch network, invest in mortgage-backed securities, pay dividends or acquire another bank or financial services company.

The stock sale comes at a time when U.S. banks and the market for initial public offerings have been hit hard by turmoil in the global credit markets.

But like most other Hawai'i banks, Territorial is profitable and doesn't have any exposure to the subprime market.

According to a filing with the SEC last month, Territorial earned $2.7 million during the first quarter, which was up from $1.8 million a year earlier.

The company listed $1.2 billion in assets and deposits of $941 million.